GBP/JPY struggles to keep buyers on the table as it retreats to 164.70 heading into Tuesday’s London open. Even so, the weekly inverse head-and-shoulder (H&S) bullish formation joins the quote’s sustained trading above 50-HMA to push back the bears.
However, the cross-currency pair’s upside hinges on the successful break of the stated bullish formation’s neckline, around 165.00.
Following that, the theory suggests a run-up towards late June’s swing high near 167.00 while the monthly peak of 166.25 can act as an intermediate halt.
It’s worth noting that June 22 peak near 167.85 and the yearly high marked in the last month around 168.75 could challenge the GBP/JPY buyers past 167.00.
Alternatively, pullback remains elusive until the quote stays beyond the 50-HMA, around 164.10.
Following that, the recent swing low around 163.00 and the monthly low of 160.40 could lure the GBP/JPY sellers. Also acting as the downside filter is the 160.00 psychological magnet.
Overall, GBP/JPY hints at further upside as it portrays a bullish chart formation.
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EUR/USD has regained its traction and climbed above 1.0200 after having dropped toward 1.0150 with the initial reaction to hot US inflation data. The risk-positive market environment makes it difficult for the dollar to preserve its strength ahead of the weekend.
GBP/USD made a sharp U-turn in the American session and rose toward 1.2100 following the earlier selloff that was triggered by the US inflation report. The dollar is struggling to find demand as safe-haven flows continue to dominate the financial markets.
Gold has gathered bullish momentum following a dip below $1,760 earlier in the session. The benchmark 10-year US Treasury bond yield is down more than 1% on the day, helping XAUUSD head towards the weekend on a firm footing.
Bitcoin price has been extremely bullish ever since July 26, when it kick-started a second bullish leg. Regardless, BTC is yet to face another hurdle that will determine if there are buyers with conviction behind the recent run-up or if it is built on weak-handed longs.
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